Tate & Lyle To Invest In Tapioca Business In Thailand
Tate & Lyle has announced that it has signed an agreement to acquire 85% shareholding in Chaodee Modified Starch Co.(CMS), a Thailand-based food starch manufacturer.
The move will strengthen the presence of Tate & Lyle in tapioca-based speciality ingredients and meet customers’ demand for better tasting and clean-label food across categories, such as dairy, bakery, snacks, noodles and soup, sauces and dressings.
'New Tapioca Capabilities'
Chief executive of Tate & Lyle, Nick Hampton, said, “We are delighted to announce this investment to expand our tapioca offering and grow our texturant portfolio.
“CMS brings new tapioca capabilities, raw material sourcing expertise and additional production capacity to Tate & Lyle, and expands our presence in the higher growth Asia Pacific region.”
A New Partnership
Tate & Lyle will operate in partnership with CMS and plans to invest in stepping up the production capacity of high functionality starch variants over the next three years.
The CMS facility will source substrate from a co-located tapioca starch mill fully owned and operated by Tate & Lyle’s partner.
The deal is subject to customary approvals, the company added.
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.